'Multiple taxations' - FIRS partners Market Traders Association of Nigeria on VAT remittance

The Federal Inland Revenue Service (FIRS) has partnered with the Market Traders Association of Nigeria (MATAN) to collect and remit Value Added Tax (VAT) to the Service from the country's markets, especially in the informal sector.

The Association is the most significant player in Nigeria's market, with a membership of well over 40 million traders across the country's 774 local governments and 36 States plus the Federal Capital Territory.

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The details of the FIRS' partnership with MATAN were disclosed on Wednesday, June 21, 2023, at a stakeholders' engagement program on the VAT DIRECT Initiative held in Lagos State.

The partnership will see the FIRS collaborating with the Association to deploy technology to enumerate traders for collecting and remitting VAT to the Service, expanding the tax net and increasing revenue for the Federation.

According to reports, the VAT DIRECT Initiative (VDI) is a program designed to foster collaboration between the FIRS and the marketplaces, especially the informal sector, in collecting and remittance the Value Added Tax (VAT) using technology.

Speaking during the Stakeholder Engagement, Mr. Muhammad Nami, Executive Chairman FIRS, highlighted that the initiative was the first of its kind and crucial to revenue generation and eliminating multiple taxations, especially from the informal sector.

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He further noted that the Service would collaborate with security agencies, especially the Nigeria Police, to deal with illegal tax collection by louts in markets.

Nami further revealed that the partnership's success would lead to increased revenue for Nigeria, providing the government with the needed resources to fund critical infrastructure and other social amenities.

He also noted that a combined monitoring and evaluation team comprising both organizations would be formed to ensure transparency and accountability of the project operations.

During the Stakeholder Engagement, the FIRS Chairman also unveiled an Identity Card to each trader upon enumeration; the card contains their tax identification number and other personal details.